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TMI Blog2025 (4) TMI 1091X X X X Extracts X X X X X X X X Extracts X X X X ..... e ITAT') for the assessment year 2004-05. 2. Heard Mr. C.V.Narasimham, learned counsel for the appellant, and Mr. A.Ramakrishna Reddy, learned Standing Counsel for Income Tax Department appearing on behalf of the respondent. 3. Vide the said impugned order, the ITAT has dismissed an appeal filed by the appellant against the order of Director of Income Tax (Exemptions), Hyderabad dated 25.01.2005, refusing to grant registration under Section 12A of the Act from inception of the appellant's institution and grant registration only prospectively. 4. The facts of the case in brief are that the appellant is an educational society formed in the year 1989 and running a junior college in the name of Maheshwara Junior College. Down the line, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 12A of the Act was filed only on 30.08.2004. The Director of Income Tax (Exemptions) finally vide order dated 25.01.2005 granted registration only from financial year 01.04.2004 in which the application was made and did not grant any registration for previous years, as according to the Director of Income Tax (Exemptions), the appellant could not satisfactorily explain the reasons for delay in filing of the application for registration under Section 12A of the Act. It was this order which was subjected to challenge before the ITAT where it was registered as ITA. No.270/Hyd/2005. The ITAT also affirming the order passed by the Director of Income Tax (Exemptions) dismissed the appeal of the appellant, leading to filing of the present appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order, the primary challenge was non-consideration of the fact that appellant already was enjoying exemption under Section 10(23C) (iii ad) and that the gross receipts of the appellant had never crossed Rs.1 crore till 2003-04 and that the Department if at all was not inclined to grant exemption for whole 14 years period, but definitely could had granted registration w.e.f. 01.04.2003 i.e. the previous financial year during which the gross income of the appellant for the first time crossed the limit of Rs.1 crore so far as exemption that could be availed under Section 10(23C) (iii ad) of the Act is concerned. 8. Learned counsel for the appellant further contended that the Director of Income Tax (Exemptions) as also the ITAT ought ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the first time was made on 30.08.2004, the appellant could not had been granted registration with a retrospective effect from 1989 onwards or even from the previous financial year. 11. According to the learned Standing Counsel for Income Tax Department, no justifiable reasons have been assigned by the appellant to show the reasons which prevented them from seeking registration earlier. According to him, the stand that the appellant has taken before the Director of Income Tax (Exemptions) and before the ITAT are in itself in self-contradiction inasmuch as at one stage they contend that because of the rush of work and ignorance of the provisions and also not getting proper advice from the Accountant they could not seek for registration ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.08.2004; and e) The gross income of the appellant crossed the Rs.1 crore limit as is prescribed under Section 10(23C) (iii ad) of the Act in the financial year 2003-04 and the application for registration was filed by the appellant only in the financial year 2004-05. 14. From perusal of the pleadings there seems to be only two grounds that the appellant have raised seeking for condonation of delay and for grant of registration w.e.f. 15.05.1989. One being, because of inadvertence of the appellant society's Accountant and, second being that the gross income of the appellant having crossed Rs.1 crore limit only w.e.f. 2003-04, therefore they did not thought it fit for moving a registration application earlier. 15. Both these grounds are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the principles laid down all those cases, one can easily reach to the conclusion that the assessees therein had made application seeking registration under Section 12A of the Act belatedly giving cogent and justifiable reasons in the delay that took place in applying for registration. However, when we look into the facts of the present case, what can be visualized is that in the present case though the appellant has tried to give certain explanation, but what is required to be considered is whether the grounds raised were cogent and strong enough to justify the delay in seeking for registration. As would be seen from the order passed by the Director of Income Tax (Exemptions) so also the order passed by the ITAT, it clearly reflects tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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